Loan Officer
Salary

The average Loan Officer in the United States can expect to rake in roughly $41K per year. Overall cash earnings of Loan Officers stretch from $26K near the bottom to $78K at the top, and the heftiest packages can encompass around $10K each from bonuses and profit sharing. This group's pay is mainly influenced by geography, followed by the company and years of experience. Medical benefits are awarded to a large number, and the greater part earn dental coverage. Men are slightly outnumbered by their female counterparts who answered the questionnaire, who make up a slight majority at 50 percent. Most workers in this position report high levels of job satisfaction. The data for this snapshot was collected from individuals who took PayScale's salary survey.

XTotal Pay combines base annual salary or hourly wage, bonuses, profit sharing, tips, commissions, overtime pay and other forms of cash earnings, as applicable for this job. It does not include equity (stock) compensation, cash value of retirement benefits, or the value of other non-cash benefits (e.g. healthcare).

XTotal Pay combines base annual salary or hourly wage, bonuses, profit sharing, tips, commissions, overtime pay and other forms of cash earnings, as applicable for this job. It does not include equity (stock) compensation, cash value of retirement benefits, or the value of other non-cash benefits (e.g. healthcare).

Job Description for Loan Officer

Loan officers work for lenders such as financial institutions or banks as well as other agencies specializing in loans. They work to help borrowers obtain money they may need for financial ventures such as mortgaging a home, starting a new business, or buying a car. Loan officers must also work to minimize the risk to their place of employment in terms of what loans may be given and to whom.

The primary function of a loan officer is to recommend loan applicants to receive loans. They do this by reviewing a potential borrower's credit history, loan history, age, and other factors that may determine the likelihood of that borrower paying the money back. Loan officers also have a say in what interest rate a borrower must pay on loan payments. The primary work environment is in an office in a bank or similar financial institution such as a credit union. The tools used for work are regular office supplies such as a pen and paper, a telephone, and a computer. Loan officerss usually work Monday through Friday from 8 a.m. to 4 p.m. Part of the job of being a loan officer is in using his or her judgment in talking to loan applicants. If something does not seem right with the applicant, the loan officer may reject the loan application. Loan officerss cannot simply give out loans to anyone who applies, as otherwise their business would lose money. Therefore, they must be above average in reading people.

Requirements for becoming a loan officer include a bachelor's degree in finance, economics, or a related field. Certain kinds of loan officers must also hold particular licenses. For example, a loan officer dealing with mortgages must have a mortgage loan originator (MLO) license. Experience in banking, lending, or sales is also required for many loan officer positions.

While the job of a loan officer is to assist applicants in receiving money for something they need, a loan officer's primary responsibility is in protecting the financial institution he or she works for. Loan officers must be proficient at recommending loans to the right borrowers.

Loan Officer Tasks

Track and maintain credit and loan data.

Work directly with clients to review agreements, explain programs, and negotiate loans and terms.

Obtain and compile financial information to evaluate loan applications and their risk.

Generate new clients and referrals through strong relationship building.

Loan Officer Job Listings

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Popular Employer Salaries for Loan Officer

Federal Credit Union reports the lowest median salary in the area by far — it's only $34K, 73 percent lower than the top payer.

Popular Skills for Loan Officer

This chart shows the most popular skills for this job and what effect each skill has on pay.

Loan Officers report using a wide range of professional skills. Most notably, facility with Residential Loans, Commercial Loans, and Financial Analysis are correlated to pay that is significantly above average, leading to increases of 47 percent, 21 percent, and 15 percent, respectively. Skills that seem to negatively impact pay include Loan Processing, Customer Service, and Consumer Loans. Those familiar with Consumer Loans also tend to know Customer Service and Loan Underwriting.

Pay by Experience Level for Loan Officer

Median of all compensation (including tips, bonus, and overtime) by years of experience.

Loan Officers do not generally earn higher incomes from more experience in the field. Salaries of relatively inexperienced workers fall in the neighborhood of $36K, but folks who have racked up five to 10 years see a notably higher median of $44K. Loan Officers see a median salary of $49K after reaching one to two decades on the job. Loan Officers who surpass 20 years on the job report pay that isn't as high as one would expect; the median compensation for this crowd sits around $53K.

Pay Difference by Location

Chicago offers some of the highest pay in the country for Loan Officers, 61 percent above the national average. Loan Officers will also find cushy salaries in Los Angeles (+37 percent), San Antonio (+27 percent), New York (+24 percent), and Columbus (+19 percent). Compared to the national average, Tulsa Loan Officers have considerably lower salaries, 21 percent below the national average to be exact. Location appears to be a major driving force in pay for those in this profession. Denver and San Diego are a couple other places where companies are known to pay below the median — salaries are 13 percent lower and 4 percent lower, respectively.